BRIEF-Postmedia executes support agreements for debt recapitalization

Thu Jul 7, 2016 12:22pm EDT
 
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July 7 (Reuters) - Postmedia Network Canada Corp :

* Postmedia announces execution of support agreements for a recapitalization transaction

* First lien notes extended by about four years to July 2021 and reduced to C$225 million with a cash repayment of about C$78 million at par

* Total debt reduced by approximately C$307 million and annual cash interest expense reduced by approximately C$50 million

* On completion of recapitalization, existing holders of variable voting shares, comapny's voting shares to own about 2% of outstanding shares

* Recapitalization to be implemented by corporate plan of arrangement, expected to be completed by end of Sept

* Second lien notes of about US$268.6 million, interest accrued from, after July 15, exchanged for about 98 percent of total shares of company

* Estimates value of its real estate that is currently available for sale is in range of approximately C$40 to C$50 million Source text for Eikon: Further company coverage: